x Widget Corp, has to choose between two mutually exclusive projects. If it chooses project A Widget Corp, will have the opportunity to make a similar investment in three years. However, if it chooses project, it will not have the opportunity to make a second investment. The following tables the cash flows for these projects. If the firm uses the replacement chain (common life) approach, what will be the difference between the represent value (NPV) of project A and project, assuming that both projects have a weighted average cost of capital of 1197 Cash Flow Project A Year : Year 1: Year 2: Year 3: -$12.500 8,000 14,000 13,000 Projects Year 01 Year 11 Year 21 Year 3: Year 4: Year 5 -$40,000 8,000 16,000 15,000 12,000 11,000 10,000 ear 6: $13,620 $14,422 $10,416 0 $9,614 O $16,024 tal of 119 and a NPV of $90,760, Widget Corp. can replicate Widget Corp. is considering a four-year project that has a weighted average cost of capital of 13% and a NPV of 590,760. Widget Corp. can ceplicate this project indefinitely. What is the equivalent annual annuity (EAA) for this project? $30,513 $35,090 $36,616 O $25,936 $27,462